GENERAL COMMENTS:
The lean hog contracts would love to keep their upward surge following the dynamic trade through Monday. But with prices climbing to new highs nearly daily, traders need to see undeniable support from consumers and the market hopes a worker strike doesn't affect production at the Smithfield plant in South Dakota. July corn is up 1 3/4 cents per bushel and July soybean meal is up $1.60. The Dow Jones Industrial Average is up 10.53 points and NASDAQ is up 21.30 points.
LIVE CATTLE:
Live cattle futures are lower as the market waits anxiously. Boxed beef prices are expected to trade lower and the market is anxious to see what the bulk of this week's cash cattle market will do. Thus far there's only been a small movement of cattle in eastern Nebraska at $191 dressed and $120 live -- both mostly steady with last week's trade. June live cattle are up $0.27 at $116.50, August live cattle are down $0.12 at $117.65 and October live cattle are down $0.15 at $123.55. The market is expected to see more interest develop from packers as the day plays on.
Boxed beef prices are higher: choice up $0.28 ($338.88) and select up $0.65 ($309.82) with a movement of 47 loads (27.76 loads of choice, 11.26 loads of select, zero loads of trim and 8.01 loads of ground beef).
FEEDER CATTLE:
Corn futures are mildly higher and, keeping with its recent trend, that is sending the feeder cattle contracts lower. August feeders are down $1.72 at $148.47, September feeders are down $1.32 at $151.30 and October feeders are down $1.45 at $153.15. The tone throughout the countryside has actually been strong as parts of the nation are receiving adequate amounts of rain and pastures are seeing the benefit.
LEAN HOGS:
Lean hog futures would love to keep trading higher. Given the strength that's stemming from the market's fundamentals, that should be attainable. Still, traders are leery as the market climbs to higher levels nearly daily. June lean hogs are up $0.40 at $120.30, July lean hogs are down $0.65 at $121.45 and August lean hogs are down $0.70 at $118.20. Watching the day's slaughter speed and how pork cutout values perform on the afternoon report will continue to remain critical as the market is now settling into less aggressive buying after the Memorial Day weekend. Meanwhile, tensions have grown stronger at the Smithfield plant in Sioux Falls, South Dakota, as the company's union vote has authorized a strike if an agreed upon contract cannot be obtained. The plant processes roughly 5% of the nation's pork supply. The Associated Press reported, "Union leaders said they hope to avoid a work stoppage as they prepare to meet with company representatives," but also quoted B.J Motley (the president of the local union) saying, "We're not going to change our stand."
The projected CME Lean Hog Index for 6/7/2021 is up $1.26 at $117.77 and the actual index for 6/4/2021 is up $1.76 at $116.51. Hog prices are lower on the National Direct Morning Hog Report, down $0.25 with a weighted average of $106.41, ranging from $100.47 to $119.00 on 2,879 head with a five-day rolling average of $105.41. Pork cutouts total 241.46 loads with 214.84 loads of pork cuts and 26.62 loads of trim. Pork cutout values: up $0.63, $135.36.
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